(4 Aug 2002)

Jerusalem
1. Exterior of building
2. Wide of group sitting at table
3. Shimon Peres speaking to cabinet
4. Ariel Sharon receiving a note and reading it
5. Cutaway to group at table
6. SOUNDBITE (Hebrew) Ariel Sharon, Israeli Prime Minister:
"I would like to ask the Minister of Defence to make a short announcement that terror carries on and we will have to continue acting against terror in every possible way."
7. Wide shot of cabinet meeting

Gaza
8. SOUNDBITE (English) Issmael Abu Shanab, Hamas spokesman:
"Those Israeli attacks and Israeli crimes against our people should be reacted to by the Palestinians. It's not a part of revenge, it's a part of our resistance to the Israeli occupation. This operation today inside Israel is an operation against Israeli soldiers who were going to the battlefield of Palestine. So this is the reaction of the Palestinians against the insistence of the Israelis to continue their occupation to the Palestinian land."

STORYLINE:

Israel prime minister on Sunday condemned the bombing of a bus in northern Israel.

The bomb tore apart a packed bus during the morning rush hour, killing at least 10 people and wounding more than two dozen.

The bus was travelling near the the Meron Junction, which is between the towns of Acre and Tsfat.

The civilian bus was carrying a number of soldiers who were returning to their bases, witnesses and officials said.

During Sunday morning's cabinet meeting, Sharon stated that Israel would have to continue "acting against terror in every way possible".

The militant group Hamas claimed responsibility for the attack in a statement received in Lebanon by Hezbollah's television station, Al-Manar.

Hamas spokesman, Issmael Abu Shanab, said of the bombing that "it's not a part of revenge - it's a part of our resistance to the Israeli occupation".

According to Al-Manar, Hamas said a suicide bomber had detonated the bomb in a second stage of retaliation for the death of Hamas' military leader, Salah Shehadeh, killed along with 14 other people in an Israeli bombing of Gaza last month.

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